Danacita Education Fintech Receives IDR 70 Billion from Singaporean
A financial technology startup (fintech lending) specifically for education, Danacita obtained series A funding of US$ 5 million or around IDR 70.4 billion. These investments are led by Singapore-based venture capitalists, Monk’s Hill Ventures, and Qualgro.
ErudiFi Co-Founder, Danacita parent, Ketty Lie said that the fresh funds would be used to improve education financing services. In addition, reaching more students in Indonesia through collaboration with partner educational institutions.
Danacita will also invest in product innovations to strengthen interactions with students and schools. Currently, Danacita is partnering with various universities and vocational schools such as President University, UNTAR, IT PLN, and Wall Street English.
“Through financial support from Monk’s Hill Ventures and Qualgro, we believe Danacita can move faster to help more students achieve their goals,” said Ketty in a press release, Thursday (25/2).
Access to Higher Education is Still a Problem in Southeast Asia
Peng T. Ong, Co-founder and Managing Partner of Monk’s Hill Ventures said that access to affordable higher education is still a big problem in Southeast Asia, especially Indonesia, where costs are almost double the average GDP per capita.
Meanwhile, financial support in the education sector is lacking and is often constrained by high-interest rates set by traditional financial institutions as well as limited services from many peer-to-peer (P2P) lending companies.
Danacita aims to innovate sustainable products and provide reliable and affordable solutions for students and educational institutions in Indonesia. Currently, retention is one of the challenges in Southeast Asia, especially Indonesia, with the number of students dropping out of school up to 10% to 15% every year.
In general, this is due to the financial difficulties faced by students and their families. To overcome this challenge, Danacita launched a service that helps school partners to track expenses and provide real-time analysis, to support school partners in recruitment and retention efforts.
Education financing has great business opportunities in Southeast Asia. Danacita provides a technology and data-based platform to facilitate access to finance for more students while enabling universities and schools to manage and monitor student lists more effectively.
Danacita Director Alfonsus Wibowo noted that almost two-thirds of students in Indonesia cannot continue their education due to economic problems. Meanwhile, the demand for access to higher education is increasing, because many companies need skilled workers, especially in the digital field.
“The benchmark for the success of our mission lies in how much we can expand access to education for more students in Indonesia,” said Alfonsus.
Has Provided Credit to Thousands of Students
Currently, Danacita has provided credit to thousands of students. The value of loans disbursed has tripled in the last year. However, Alfonsus did not specify the amount. Peng T Ong, Monk’s Co-founder and Managing Partner of Hill Ventures, said that access to affordable higher education is still a big problem in Southeast Asia, especially Indonesia.
The costs are almost double the average gross domestic product (GDP) per capita. On the one hand, he considered that financial support in the education sector was minimal and often constrained by high-interest rates. “Danacita is here to provide technology and data-based solutions, which provide educational opportunities for students,” said Peng.
Meanwhile, founder and Managing Partner of Qualgro, Heang Chhor, assessed that the education financing business has great potential in the region. In this case, Danacita provides technology and a data-based platform to facilitate access to finance for students. “It also allows universities and schools to more effectively manage and monitor student lists,” Heang said.
Danacita is a subsidiary of ErudiFi, a technology-based company whose mission is to build a brighter future for the younger generation in Southeast Asia. Since operating in Indonesia in 2018, Danacita has helped ease the payment of tuition fees for students who are on more than 100 campuses throughout Indonesia.